Can we count K-1 earnings....2 companies

We have a client who owns two companies and both have employees including himself.  One is a corporation; the other is a LLC.  He has W-2 wages of about $190,000 from the corporation and over a million from the LLC.   Both companies are adopting employers to the same retirement plan and all employees are covered for both entities.

Question:  In calculating the maximum benefit he can have for 2017, are we allowed to use both his W-2 wages plus enough K-1 income to get him up to the maximum we can take into account for the year of $270,000?  Our gut reaction is "yes" but one of us has some doubts.

We are grateful for any help!

Sorry, I realized I wasn't quite clear.  One company issues him a W-2 for $190,000 and the LLC issues him a K-1 for the million dollar income.

Are you talking about a K-1 from the LLC?  First point to note is that if he is the sole owner of the LLC there would be no K-1; you would look to his Schedule C.  If there is a K-1 then he must have one or more partners.  Second point, is the Schedule C or K-1 income earnings subject to self-employment tax?  If not then it can't be eligible compensation.  Third point, does the plan definition of "compensation" include self-employment income?   

@jpodExcellent points and I don't know. I am asking on behalf of a colleague who actually has the details.  I will find out and get back on this.

If it is an LLC taxed as a corporation, and the corporation is taxed as an S-Corp, then none of the K-1 counts for pension purposes.

@jpod -  There are no partners so it is Schedule C income, not K-1, as you said.  The income is subject to the self-employment tax.  The plan compensation definition includes self-employment income.  As per my colleague who brought this up in the first place.  :)

In this case with the facts you describe you aggregate the compensation from both and then limit it for 401(a)(17).